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FAQ

How does Massmart handle its shareholder relationship with Walmart?

In November 2013, the Massmart Board of Directors formally adopted a policy that granted to its majority shareholder, Wal-Mart Stores, Inc., an appropriate level of access to and information within the Massmart business in order to comply with its governance and reporting obligations under applicable US laws. Generally, this policy covers the following areas: (i) access to certain financial, operational and strategic information, (ii) access to the business by relevant Walmart management to provide technical consulting, oversight, audit and related services, (iii) appointment rights and reporting lines for designated executives, and (iv) approval processes for contracts between Walmart and Massmart.

What does “The Channel” refer to?

Massmart Channel consists of formal trading and functional forums where ideas on collaboration across Divisions are shared. Trading forums cover Food and Liquor, General Merchandise, and Cellular. Functional forums include Technology, Information and Process (TIP), Operations and Human Resources. Trading forums are headed by Divisional CEOs and functional forums are headed by Group Executives. Directors and Executives from the Divisions attend forums in their specific areas of competence. Once consensus is reached on a collaborative proposal, the Executive Committee approves whether it should be rolled out across the Group.

In which African countries does Massmart currently trade?

Explain the four divisions

Massdiscounters operates two retail formats: Game and DionWired. Game is a discount retailer of general merchandise FMCG, and non-perishable and dry groceries for home, leisure and business use, operating throughout South Africa and in 14 cities in sub-Saharan Africa. DionWired is a South African electronics and appliances speciality store catering for the middle- to upper-end income consumer. Game currently has 106 stores and the total number of DionWired stores is 16.

Masswarehouse was the founding entity of Massmart and currently operates 19 warehouse stores, branded Makro. These are situated in all the large metropolitan centres of South Africa selling food, liquor and general merchandise to retail and wholesale customers.

Massbuild operates four complementary brands: Builders Warehouse, which operates large DIY and home improvement stores in major urban areas; Builders Express, a chain of smaller neighbourhood home and garden improvement stores; Builders Trade Depot, a chain of building contractor outlets located in industrial sites in peri-urban and urban areas; and Builders Superstore, a discount home improvement format in townships and towns, servicing surrounding rural areas.

Masscash consists of wholesale food and cosmetics business interests as well as retail outlets, all of which target the lower LSM groups. Our wholesale division consists of CBW Holdings, Shield and Jumbo Cash & Carry as well as a number of independent wholesalers operating under their own brands while our retail division is being consolidated under the Cambridge Food banner and the Rhino Group.

CBW wholesales food, liquor, groceries and cosmetics in bulk to independent general dealers, government feeding schemes, franchise members, small traders and hawkers in peri-urban and rural areas within southern Africa. Jumbo sells mainly cosmetics, toiletries and hair-care products to individual customers and independent general dealers. Shield is a voluntary buying association that buys products in bulk on behalf of 633 members who own wholesale or retail food businesses in South Africa, Botswana, Namibia and Swaziland.

We also manage the brands of a number of our wholesale customers. At the lowest end of the market, we provide marketing support such as supplying signage and leaflets to spaza shop and shebeen owners through our Banner Group initiative. Masscash owns the rights to these brands and logos.

What is Massmart’s sustainability proposition?

Our sustainability proposition is to achieve commercial success by adopting a mass distribution business model that offers benefits on both ends of the retail value chain without compromising our commitment to socially accountable business practice.

How does Massmart define sustainable business practice?

Massmart has adopted the Dow Jones definition which describes sustainable business practice as “a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environment, and social developments.”

Does Massmart publish an Annual Sustainability Report?

Massmart published its first Sustainability report during September 2004. As of 2010, Massmart adopted an integrated Corporate Accountability Report as part of the Annual Report.

What is Massmart’s Broad Based Black Economic Empowerment philosophy?

As a company with its roots in South Africa, the Massmart Board of Directors acknowledges that transforming our workplace and broader society is not only morally and ethically right, but it is also commercially prudent.

Morally, BBBEE is a necessary measure for the normalisation of South African society given the emphasis that it places on the socio-economic upliftment of previously disadvantaged black people. In this sense we recognise that Massmart’s constructive commitment to BBBEE will contribute to the creation of a better society for all South Africans.

Commercially, BBBEE will improve the buying power of the broader South African demographic, thereby expanding the markets in which we trade and increasing demand for the products that the Group sells.

We recognise therefore that transformation is critical for the sustainability of a healthy society and our business, we understand the implications and challenges it presents and the opportunities and benefits that will materialise through successful transition.

How has Massmart responded to HIV/AIDS in the workplace?

Health care issues in developing countries are numerous and any company reliant on a healthy workforce in South Africa must implement additional workplace-based interventions to address the growing pressures of diseases like HIV/AIDS. Our wellness programme has implemented one of the most comprehensive corporate HIV/AIDS prevention and treatment programmes in the country.

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